Australian Jury Fails To Reach Verdict In Former Tax Official’s Fraud Trial

by Mary Swire, Tax-News.com, Hong Kong

18 August 2005

A jury was unable to reach a verdict this week in the case of former Australian First Assistant Tax Commissioner Nick Petroulias, who is accused of defrauding the tax system by profiting from favourable rulings that he gave to firms in which he had an interest.

Petroulias was facing charges in the New South Wales Supreme Court and is alleged to have cost Australian taxpayers around A$40 million (US$30.5 million) by ruling selectively on tax minimisation schemes. He is also accused of pocketing A$200,000 from these activities.

However, after hearing three months of evidence and deliberating for eight days, the jury told Justice Brian Sully on Tuesday that it was unable to reach a verdict because there was an "unresolvable conflict".

Petroulias joined the Tax Office back in 1997, and the following year he was placed in charge of clamping down on dubious tax evasion schemes. He resigned in 1999 in the wake of the fraud allegations. He was committed to trial in July 2002 on charges of defrauding the commonwealth, corruptly receiving benefit and revealing tax documents. However, in December of that year, a judge found that the original magistrate had made certain errors of law, and granted Petroulias leave to appeal against the fraud charge.

Petroulias had pleaded not guilty to the charges.

It has been reported that the Director of Public Prosecutions will decide later this year whether to start a new trial.

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